By Helmut K. Anheier, Diana Leat
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Extra info for CREATIVE PHILANTHROPY
Underlying this focus on money there are some complex assumptions about the power of money. ‘The traditional dependence solely on grant-making in achieving foundation goals may be the single biggest liability in the field of philanthropy’ (Prager 1999). To make a difference, foundations should act systematically to strategically deploy all available resources. Grant-making – the transfer of financial resources from the foundation to other organizations – implicitly assumes that social problems can be solved directly or indirectly by money.
The next chapter will take a closer look at two of the key concepts involved: creativity and innovation. 3 Creative philanthropy A key element of our argument for a renewal of philanthropy so far has been that much of what foundations do could be done, and perhaps done equally well, by other nonprofit organizations, and even public agencies and businesses. We also suggest that other foundation-like forms such as donor-advised funds and community foundations could take on roles more conventional foundations play.
Innovation is a goal pursued by foundations working in a wide range of areas in science, research, the arts, health, social welfare, and the environment. The role of promoting innovation is attractive to foundations for several reasons. One is that it provides an apparently simple demarcation line between the role of government and that of foundations. Another is that, in the past, it has served as a way of restricting foundation involvement to manageable proportions. If foundations exist to support innovation, this enables them legitimately to engage only in short-term funding.